Senators introduce bipartisan emergency savings bill
A bipartisan bill aimed at boosting emergency savings and reducing retirement plan leakage has been introduced in the Senate. Under the bill, workers can save up to $2,500 in an emergency savings account, although plan sponsors can establish a lower cap, according to a fact sheet. The savings accumulated in the accounts will be made on an after-tax basis and can be withdrawn without tax penalties at any time, with permissible limitations on withdrawal frequency.
"We can't always predict the future, and too many Hoosier families encounter situations where they struggle to cover unexpected expenses through no fault of their own," Mr. The senators cited a March report from the Consumer Financial Protection Bureau that found that 59% of workers with access to a retirement account but no emergency savings withdrew money from their retirement account in the previous 12 months compared to only 9% of those who had at least a month of emergency savings on hand. "We know that many Americans are struggling to make ends meet, and that even a small, unexpected expense or emergency can send families into a financial spiral that puts them even further behind," Mr.
The bill has earned widespread praise from retirement industry, including the American Benefits Council, ERISA Industry Committee, U.
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